pigs, page-46

finch2

Agrree with your 9c and $21.85 offer if "correctly" distributed should be 3c for PPX and $34 for PXUPA.

The "correct" distribution allows for conversion of PXUPAs to PPX, where there will be around 3,000 mill PPX plus the current 600 mill of PPX ie ~ 3,600 mill PPX

If I understand your next calc you derive NTA of ~ 24c after PXUPA conversion and $661 mill NTA which includes $267.5 mill of PXUPA? NOTE: I actually calculate $661 mill / 3,600 mill PPX = $0.19 c/PPX?

Irrespective, the current 3c /PPX offer represents ~ 12% of your 24c / PPX on the books? Seems very low ball to me.

Based on both our analysis, it appears PXU conversion is certainly not in the best interest of PPX holders.

IMHO PPX holders should be agitating to pay out the $267.5 mill to PXU holders which would then leave $661 - $267.5 = $ 393.5 mill less $267.5 mill borrowing (to pay out PXU) = $126 mill or ~ $0.21 /PPX (which is above my $0.19 above).

This buyout would also remove any potential dilution from future PXU conversion and also remove the current restriction on dividend payments to PPX holders which is potentially impacting the SP.

An even better result for PPX holders would be if PXUs could be bought back at less than $100 face value eg at $217 mill (~ $80/PXU). A big win for PPX holders as increases NTA as a lower loan required to pay out PXUs.

The $50 mill saving would increase NTA per PPX by ~ $0.08/ PPX. NOTE: $0.08 is the current PPX SP!

I recognise that PPX would need to service any $ to fund the PXU buyout but this would (I expect) be no more than needed to pay PXU's anyway - particularly if PXU's were bought back at a discount.

It seems clear to me that if NTA / PPX is a driver in providing security for PPX holders moving forward then PPX holders should be agitating to take out the PXUs as IMHO it has the following benefits for PPX holders:

1......Prevents any posibility of future conversion of PXUs (at $100/PXU) which, based on current $0.08 SP, would basically wipe out existing PPX holder equity via dilution

2......If PPX can buy PXUs at a discount to $100 face value then the NTA attributable to PPX holders increases by that discounted amount eg Immediate increase in NTA of $0.08 /PPX if PXUs bought back at a $50 mill discount

3......Enables dividends to be paid to PPX holders without having the current restriction of PXU's being paid for 2 prior periods before a PPX dividend can be paid.

4......Increased NTA/PPX (in 2 above) will provide more time for PPX to recover.

5.....If PPX continues on its current path, then a wind up may be on the cards. IF so, then PPX likely to receive $0 as they stand behind PXU.

I hold only PXU but believe the above establishes a pragmatic way forward for both PPX and PXU rather than the current adversary position which I have noticed in various postings.